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Making It Affordable for People to Care
A Long-Term Care Solution
from AAHSA
From ABC’s World News Tonight
What is Long-Term Care?
The broad array of services and supports that people of all ages need when they can no longer completely care for themselves.
Long-term care services and supports include: help with bathing, dressing, or with household tasks like cooking and cleaning.
These services and supports may be provided by a person’s family members or by paid caregivers.
The Scope of the Challenge: Young and Old
Where Is Care Provided?
80% at home
20% institutional setting
35.4Hours
PerWeek
Caregiving Commitment
Family Caregivers – What They Spend, What They Sacrifice, November 2007
32%
Caregiving Commitment
5+ years
52%
3+ years
Who Pays?
PrivateInsurance
PublicFunding
4% 28%
Families/UnpaidCaregivers
68%
Families and
Unpaid Caregivers
68%
$5,531
Annual cost of care
Personal Financial Commitment
Family Caregivers – What They Spend, What They Sacrifice, November 2007
Cost Implications for BusinessesCost Implications for Government
$2,000 per employee$100 billion
Source: Metlife Mature Market Institute and National Alliance for Caregiving, July 2006 Source: AAHSA estimate for 2007, based on data for 2006 in "Medicaid and long-term care" fact sheet,
Georgetown University Long-Term Care Financing Project, January 2007
Rose’s Story
Number of Adults 65 and Older Requiring Assistance
Nu
mb
er in
mill
ion
s
Severely Disabled
Moderate Disabilities
7.7 8.9
6.3
13.0
3.33.7
5.0
2010 2020 2030 2040
14.5
25
20
15
10
5
0
Source: The Retirement Project, 2007, by Johnson, Toohey and Wiener
The Long-Term Care Solution
A Framework for Financing Long-Term Care in America
Who is AAHSA?
A non-partisan, non-profit advocacy group representing not-for-profit aging services providers
Members serve more than two million persons daily Mission to create the future of aging services
Widespread Concern About Long-Term Care Reform
74%
Very Important
20%
Somewhat Important
94%
Very or Somewhat Important
Source: National Commission for Quality Long-Term Care, 2007
Widespread Support For A Voluntary Contribution System
Support Strongly
Support Somewhat
Oppose Somewhat
Oppose Strongly
Don't Know
46%
31%
Source: National Commission for Quality Long-Term Care, 2007
The Long-Term Care Solution
National insurance trust Broad-based consumer participation Cash benefits optimize choice No underwriting Available to all adults
regardless of age Medicaid as safety net
Number of Years of Covered
Benefits
Annual Daily
1 $266 $0.73
2 $465 $1.27
3 $614 $1.68
5 $806 $2.21
Lifetime $1,048 $2.87
Premium PricesExample Plan: includes all age 21+, 5 year vesting, $75/day cash benefits for disability (2+ADLs)
Source: “Modeling a New Long-Term Care Financing Plan,” The Moran Company, December 2007
Choice
Responsibility
Fairness
73¢/day = 1 year’s worth of benefits
$1.68/day = 3 years’ worth of benefits
$2.87/day = Lifetime benefits
The Long-Term Care Solution
The Choice is Ours
Moral Imperative
Fiscal Imperative
Political Imperative
The Time is Now
